The Measurement and Recognition in the Financial Reporting Disclosures

Abstract

This research aims to examine the importance of completing annual reports properly. It also tries to understand the causes of complexities the business faces while creating reports. It has been identified that there are different types of intangibles and there is no particular method to measure them. This creates complexity while creating reports. Accounting measurements are relevant for preparing financial statements, and these statements are cornerstones for decision-making by the various stakeholders in any economy. This research analyses lessons that can be learned from different aspects involving accounting measurements in financial reporting, with significant reference to intangibles, leasing, goodwill, and pensions. It considers the relevance of these items, their influence on the balance sheets alongside profit, and secondary issues related to them. Hence, the essay leverages previously published or existing studies, amply demonstrating how these aspects of accounting are entwined. With the help of this analysis, the future perspective of the accounting measurements concerning examples like IFRS and US GAAP is explored along with the recapitulation of the thesis statement.